Agenda item

Report of the Chamberlain and Chief Grants Officer.

The Board were informed that in October 2012 Common Council agreed that the Fund should achieve an overall financial return: “at a rate of not less than the average interest earned on the City’s cash holdings”. Members were informed that given that the Fund would consider a number of investment proposals where individual investments are expected to return a lower financial return than the CPI inflation rate they would only be considered if there was a significant case that the social outcomes compensate for the loss of income.

In response to a comment by Members, officers were tasked with altering the wording of the criteria to read as follows: “The Social Investment Board should seek a total return equivalent to the CPI inflation rate (2.7%) on the day when the £20m allocation was made (25 October 2012) and that the individual investments should seek a return which at least matches the average cash rate achievable on that date (2%).”

Officers informed Members that targets would be reviewed and revised on their 3^rd anniversary (25 October 2015) in line with the usual investment term for assessing the performance of other City traditional investments. The Board would receive updates from the Corporate Treasurer on the average interest earned on the City’s cash holdings at each meeting.

Officers would submit a report to Members outlining the opportunities and risks presented by housing association bond options as a source of potential Fund investment opportunities. As well as potential housing association bond option Fund investment opportunities that may exist.

In addition, officers would submit a report to Members advising on ring-fencing funds for high impact, earlier stage and potentially higher risk social investments that were potentially not secured by assets.   Officers would research what high impact and high risk projects could be potential investment opportunities and details of what these projects may involve.

– RESOLVED – That,

a) the proposed targets and review date be agreed; and

b)the investment criteria be  updated and republished in its amended form.